This Act was ratified to manage the personnel headcounts of central government agencies, to enhance the flexibility of headcounts management and the efficiency of human resource.

The first-level agencies and their subordinate agencies (hereinafter referred to as “agencies”) shall be governed by this Act.
The first-level agencies in the preceding paragraph comprise:
(1)The Executive Yuan
(2)The Legislative Yuan
(3)The Judicial Yuan
(4)The Examination Yuan
(5)The Control Yuan
Subordinate agencies of the first-level agencies are defined as the second-level, third-level, and fourth-level agencies according to their hierarchies.
This Act shall apply mutatis mutandis to the Office of the President and the National Security Council.

The personnel headcounts specified in this Act encompass five categories as follows:
(1)Category 1: Political appointees placed by agencies for the performance of duties, civil personnel with titles, ranks and grades, medical personnel and employed personnel. Personnel of this category shall exclude those in Categories 3-5, faculty and staff in public schools, and staff in public hospitals.
(2)Category 2: Contract-based employees, security guards and maintenance workers (including technicians and drivers) employed by agencies in accordance with applicable laws and regulations. Personnel of this category shall exclude those in Category 3 and 4.
(3)Category 3: Staff (including bailiffs), contract-based employees, security guards, and maintenance workers (including technicians and drivers) employed by the Judicial Yuan and its subordinate agencies.
(4)Category 4: Staff (including bailiffs), contract-based employees, security guards, and maintenance workers (including technicians and drivers) employed by the prosecutorial agencies under the Ministry of Justice.
(5)Category 5: Staff (including police officers) of police, fire and coast guard agencies.
The personnel headcounts specified in the preceding paragraph shall exclude military personnel.

The maximum personnel headcount of central government agencies shall be 160,900.
The maximum personnel headcount of Category 1 shall be 74,600; the maximum personnel headcount of Category 2 shall be 40,100; the maximum ersonnel headcount of Category 3 shall be 15,000; the maximum personnel headcount of Category 4 shall be 6,900; the maximum personnel headcount of Category 5 shall be 24,300.
After this Act comes into force, the personnel administrative agency or unit of the Executive Yuan shall review and analyze the personnel headcounts of central government agencies every four years, formulate reasonable streamlined personnel headcounts, and present a report to the Legislative Yuan in the general budget proposal.
After this Act comes into force, the personnel headcounts, originally not applicable to this Act but added to central government agencies due to organizational transformation or transfer of duties from local governments to central governments, shall not be subject to the maximum personnel headcounts prescribed in this Act.
In response to changes in political and economic conditions of the nation, or in order to deal with sudden, extraordinary or newly emerging affairs of great importance, the Executive Yuan may, after consulting with first-level agencies and within the maximum personnel headcounts prescribed in Paragraph 1 hereof, adjust the maximum personnel headcount of each category. However, the maximum personnel headcount of Category 3 in Paragraph 2 hereof shall not be reduced.

With the exception of the Judicial Yuan and its subordinate agencies, allocation of the personnel headcounts of the first-level agencies and their subordinate agencies shall be carried out in accordance with the following procedures:
(1)The total numbers of personnel headcounts of each first-level agency and its subordinate agencies shall be set by the Executive Yuan within the maximum personnel headcounts of each category prescribed in Article 4, Paragraph 2, after consulting with the first-level agencies.
(2)The total numbers of personnel headcounts of each second-level agency and its subordinate agencies shall be set by its superordinate first-level agency within the allocated personnel headcounts determined in the preceding subsection.
(3)The personnel headcounts of each third-level agency and below shall be drafted by its superordinate second-level agency within the allocated personnel headcounts determined in the preceding subsection, and the said proposals shall be submitted to their superordinate first-level agencies for their disposition.
The personnel headcounts of the Judicial Yuan and its subordinate agencies shall be determined by the Judicial Yuan within the maximum personnel headcount of Category 3 prescribed in Article 4, Paragraph 2.
Each agency shall specify the headcounts and categories of its personnel in the annual budget proposal. Change of personnel headcounts within the fiscal year due to changes of organizational affiliation, merger, or other adjustment should be approved by their superordinate first-level agencies.
Agencies prescribed in Article 2, Paragraph 4 shall specify the headcounts and categories of their personnel in annual budget proposals after consulting with the Executive Yuan.

With the exception of instances in which the position titles, official ranks, grades, and headcounts of agencies’ personnel are prescribed by laws, agencies shall, according to Article 6 of the Civil Service Appointment Act, configure the Personnel Establishment Tables by properly setting the respective official ranks and grades of personnel in accordance with their degree of duties and responsibilities, nature of jobs, hierarchies of agencies.
Personnel Establishment Tables specified in the preceding paragraph shall not violate relevant regulations governing civil service examinations and qualifications, and shall be submitted to and referred by the Examination Yuan.
After this Act comes into force, personnel headcount of each agency shall be governed solely by the present Act, organization acts, regulations and Personnel Establishment Tables pertaining to respective agencies, and shall not be prescribed by administration function laws or other regulations.

In the event that duties of agencies are transferred to other agencies or to local governments, relevant personnel shall be transferred accordingly, or they may be retired or be released with severance benefits in accordance with relevant regulations.
In the event that agencies are transformed into non-departmental public bodies or privatized institutions, relevant personnel shall become employees of the new institutions accordingly. Civil servants who refuse such change in employment status shall be reassigned to other agencies with the assistance of relevant superordinate agencies, or they may be retired or be released with severance benefits in accordance with relevant regulations on the day the said transformation takes place.
The rights and interests of personnel who undergo employment transfers in conjunction with the transformation of their agencies, as described in the preceding two paragraphs, shall be dealt with in accordance with the Civil Service Appointment Act, the Civil Service Protection Act and other relevant regulations.
Up to 20 percent of the personnel headcounts downsized in accordance with Paragraphs 1 and 2 may be reallocated to the relevant second-level agencies by their superordinate first-level agencies in the ensuing annual budget proposals.

Agencies shall regularly evaluate the performance of their personnel and shall, in accordance with relevant regulations, take action to deal with personnel who lack necessary competency, such as discharging them on the basis of inadequate performance assessment, releasing them with severance benefits, not renewing their contracts, providing them with training, or reassigning them to other positions.
In the event that agencies’ duties are expanded, agencies shall first adjust their current personnel headcounts arrangements to meet actual requirements and increases or decreases of duties. Personnel headcounts of agencies shall be downsized or reallocated to other agencies under any of the following circumstances:
(1)Agencies or internal units have been dissolved or merged.
(2)The duties and functions of agencies have reduced.
(3)The duties of agencies can be performed more effectively or conveniently by the private sector or local governments.
(4)Missions of major national development programs, special projects or plans have completed partly.
(5)Decisions have been made to downsize or reallocate personnel headcounts based on organizational and workforce evaluations.
(6)Redundant workforce results due to the implementation of hierarchical responsibilities and delegation, the promotion of computerization, appointment and outsourcing of agencies’ duties, and the utilization of social resources.
(7)Other circumstances in which downsizing or reallocation of headcounts is required due to government policies and agencies’ operational requirements.
The first-level agencies shall evaluate the reasonableness of personnel headcounts of their subordinate second-level agencies every two years; the second-level agencies shall evaluate the reasonableness of personnel headcounts of their subordinate third-level agencies every two years. The evaluation of the reasonableness of personnel headcounts shall place special importance on the compatibility of agencies’ operational conditions with their policy strategies. As a result of such workforce evaluations, agencies may be required to downsize their personnel headcounts or reallocate portions of them to other agencies. In the event of such reallocation, personnel cannot refuse being transferred but may, in accordance with relevant regulations, be retired or be released with severance benefits.
Workforce evaluations prescribed in the preceding paragraph shall be conducted in an independent, professional manner by task forces comprising high-level officials, scholars, and experts assigned or invited by the relevant first-level or second-level agencies.
Transferred personnel shall be given new skills training by the agencies to which they are transferred or by relevant agencies in charge.
Downsized personnel shall be provided with job transferred training by relevant agencies in charge if necessary.

The Executive Yuan shall designate a specific agency or unit to handle affairs concerning planning, adjustment, supervision and evaluation of headcounts management of agencies. A regulation governing headcounts management, the applying scope of this Act to agencies prescribed in Article 2, Paragraph 4, and other related affairs shall be ratified by the Executive Yuan.
Affairs concerning planning, adjustment, supervision, and evaluation of headcounts management of the Judicial Yuan and its subordinate agencies shall be proceeded by the Judicial Yuan in line with the regulations in the preceding paragraph, and be submitted to the agency or unit designated by the Executive Yuan.

In order to increase the effect of personnel downsizing, the Executive Yuan may, for limited periods of time, offer preferential severance packages to personnel, based on a voluntary application procedure ratified by the Executive Yuan.

The effective date of this Act shall be decided by the Executive Yuan in consultation with the Examination Yuan.
The amended provisions of this Act shall come into force on the date of promulgation.